Miceli, Thomas J. (contributor) - 2006
hence the crime rate)
fixed. But since this causes social costs to fall, the original s could not have been
optimal. It … Fine
In the case where punishment is a fine, there is no social cost of punishment, so
k(s)≡0. Combining the social … costs of the various outcomes in Figure 2 with the relevant
probabilities yields expected social welfare of
SW …